9 Sep 2015 11:41
Issued by: | BHP Billiton Plc
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Date: | 9 September 2015
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To: | London Stock Exchange JSE Limited
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For Release: | Immediately
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Contact: | Helen Ratsey +44 (0) 20 7802 7540
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BHP Billiton Plc - Barclays CEO Energy - Power Conference Presentation
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UK Listing Authority Submissions
The following document has today been submitted to the National Storage Mechanism and will shortly be available for inspection at www.hemscott.com/nsm.do:
· Barclays CEO Energy - Power Conference Presentation
The document may also be accessed via BHP Billiton's website - www.bhpbilliton.com
BHP Billiton Plc Registration number 3196209
Registered in England and Wales
Registered Office: Neathouse Place London SW1V 1LH United Kingdom
A member of the BHP Billiton Group which is headquartered in Australia
NEWS RELEASE | |
Release Time | IMMEDIATE |
Date | 9 September 2015 |
Number | 18/15 |
BHP BILLITON PETROLEUM OPERATIONAL EXCELLENCE UNDERPINS VALUE AND RETURNS
BHP Billiton President Petroleum Tim Cutt will today explain how the Company expects to create significant value from its Petroleum resources at the Barclays CEO Energy-Power Conference in New York.
Speaking ahead of the conference, he said: "The diversification of BHP Billiton's portfolio and the strength of our balance sheet allow us to focus on value over volume. We have responded decisively to the change in market conditions and retain significant flexibility across our Petroleum development programs. We can wait until the time is right before investing.
"We are well positioned on the cost curve and our productivity programs are making us even more competitive. BHP Billiton Petroleum is a leader in safety. We have best-in-class operating costs and deepwater drilling capabilities in our Conventional business. And we continue to reduce our Onshore US drilling costs and build on our industry leading well completion efficiency.
"We are the top performer in the Black Hawk, where we generate returns of 35 per cent at current prices with a further three to five years of development ahead of us. In the Conventional business, our operational experience and capability provide a competitive advantage. In the last financial year we reported unit costs of US$10.92/boe, an EBITDA margin of 70 per cent and average operational uptime of 95 per cent.
"Our portfolio includes several attractive growth options that will add significant value for our shareholders over the long-term. We expect natural field decline and demand growth will support higher oil and gas prices in the medium term but remain focused on improving the competitiveness of these developments in today's market conditions.
"Applying what we have learned in the Black Hawk to the Permian will reduce the development costs of a field we believe could produce well over 150kboe per day. And we will time development to benefit from the expected improvement in margin.
"Our Onshore US dry-gas resource of 25 TCF could support half a century of production at twice our current production rate. Our Haynesville acreage is in the core of one of the industry's premier dry-gas positions and we are working to achieve at least 20 per cent returns at US$3/mcf Henry Hub.
"In our conventional business, we continue to improve the capital efficiency of the Mad Dog II project which provides a significant medium term growth opportunity. We will invest in oil exploration through the cycle and expect to test three major opportunities in our core basins of Gulf of Mexico, Trinidad & Tobago and Western Australia over the next three years."
In conclusion, Mr Cutt said "We remain focused on value and returns above all else. Our projects must compete with other opportunities within BHP Billiton's portfolio. We will keep our plans under review and tailor our investment program to market conditions to maximise value for shareholders."
Further information on BHP Billiton can be found at: www.bhpbilliton.com.
Media Relations
Australia
Emily Perry Tel: +61 3 9609 2800 Mobile: +61 477 325 803 email: Emily.Perry@bhpbilliton.com
Paul Hitchins Tel: + 61 3 9609 2592 Mobile: + 61 419 315 001 email: Paul.Hitchins@bhpbilliton.com
Eleanor Nichols Tel: +61 3 9609 2360 Mobile: +61 407 064 748 email: Eleanor.Nichols@bhpbilliton.com
United Kingdom and Americas
Ruban Yogarajah Tel: +44 20 7802 4033 Mobile: +44 7827 082 022 email: Ruban.Yogarajah@bhpbilliton.com
Jennifer White Tel: +44 20 7802 7462 Mobile: +44 7827 253 764 email: Jennifer.White@bhpbilliton.com
| Investor Relations
Australia
Tara Dines Tel: +61 3 9609 2222 Mobile: +61 499 249 005 email: Tara.Dines@bhpbilliton.com
Andrew Gunn Tel: +61 3 9609 3575 Mobile: +61 402 087 354 email: Andrew.Gunn@bhpbilliton.com
United Kingdom and South Africa
Jonathan Price Tel: +44 20 7802 4131 Mobile: +44 7990 527 726 email: Jonathan.H.Price@bhpbilliton.com
Dean Simon Tel: +44 20 7802 7461 Mobile: +44 7717 511 193 email: Dean.Simon@bhpbilliton.com
Americas
James Agar Tel: +1 212 310 1421 Mobile: +1 347 882 3011 email: James.Agar@bhpbilliton.com
Joseph Suarez Tel: +1 212 310 1422 Mobile: +1 646 400 3803 email: Joseph.Suarez@bhpbilliton.com |
BHP Billiton Limited ABN 49 004 028 077 Registered in Australia Registered Office: Level 16, 171 Collins Street Melbourne Victoria 3000 Australia Tel +61 1300 55 4757 Fax +61 3 9609 3015 |
BHP Billiton Plc Registration number 3196209 Registered in England and Wales Registered Office: Neathouse Place London SW1V 1LH United Kingdom Tel +44 20 7802 4000 Fax +44 20 7802 4111 |
Members of the BHP Billiton Group which is headquartered in Australia |
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